Centre wants CBI probe into activist Teesta Setalvad's Ford money

The CBI probe has been initiated because Teesta Setalvad's SCPPL had not yet got clearance from the Ministry of Home Affairs under the Foreign Contributions Regulation Act, hence, making this grant a serious violation of FCRA provisions.

The Centre wants the Central Bureau of Investigation to probe into the alleged transfer of funds by the Ford Foundation to activist Teesta Setalvad's Sabrang Communication and Publishing Pvt Limited (SCPPL).

Sources said SCPPL had accepted a grant of 2.9 lakh dollars from the Ford Foundation despite being a private company not having clearance from the Ministry of Home Affairs under the Foreign Contributions Regulation Act (FCRA). This donation was, therefore, a serious violation of FCRA provisions, which mandate funding from a foreign source to only those recipients who have FCRA registration.

During its inspection of the company's accounts, the home ministry found that an amount of Rs 50 lakh was allegedly transferred to it by Setalvad's Sabrang Trust which also was in violation of FCRA norms. The Gujarat government had asked the home ministry to take action against Ford Foundation, alleging that the US-based organisation was interfering in the internal affairs of the country and also abetting communal disharmony through an NGO run by social activist Setalvad. The fund transfer from Ford Foundation, at present, has to be cleared by a nodal official in the home ministry. In April, the government had ordered that funds from the Ford Foundation should not be released by any bank to any Indian NGO without mandatory permission from the home ministry. The Gujarat government and Setalvad are embroiled in legal battles. While she has filed several cases against the state government functionaries, including the then chief minister Narendra Modi in connection with the communal riots of 2002, the state police have filed a case of embezzlement of funds against her.

Setalvad, in her earlier statement, had said that Sabrang Trust had cooperated with the home ministry team which visited its offices. Her anticipatory bail plea is pending before the Supreme Court after the Gujarat High Court rejected her pre-arrest bail plea.